Hindalco Q1 profit seen up 30% at Rs 383 cr but operational nos may be weak

Revenue from operations may jump 32 percent to Rs 10,030 crore in April-June quarter compared with Rs 7,597.35 crore in same quarter last fiscal.

Aluminium major Hindalco Industries' standalone profit is expected to increase 30 percent year-on-year to Rs 383 crore in the quarter ended June 2017. It may be partly supported by lower interest cost.

Revenue from operations may jump 32 percent to Rs 10,030 crore in April-June quarter compared with Rs 7,597.35 crore in same quarter last fiscal.

However, operating profit is seen falling at Rs 1,215 crore from Rs 1,231.7 crore and margin may shrink to 12.1 percent from 16.2 percent on year-on-year basis, according to average of estimates of analysts polled by CNBC-TV18.

Hindalco results will be supported by the LME rally. LME aluminum and copper prices increased 20 percent YoY. Aluminum physical premiums also increased during the quarter.

Factors:-Copper volumes may spike on a low base-Uncertainty on GST could hurt volumes; export realisations may be lower than domestic-Gains from higher LME prices are partially offset by higher input costs, rise in alumina transfer price (at Utkal) and hedging losses